Tax take jumps in January with transfer of Apple tax money

Without the Apple tax receipts the surplus dropped €0.4bn on last year

Ministers Jack Chambers (left) and Paschal Donohoe. January saw the introduction of spending measures announced in the Budget including increases to Social Protection weekly rates, the expansion of the school meals scheme and the increased health sector investment. Photo: Sam Boal/Collins Photo

Tax receipts in January jumped by €2.3bn in January as the State received another tranche of the €14.3bn Apple tax ruling.

According to Exchequer Revenue figures, tax receipts amounted to €10.1bn in the first month of the year, up by €2.3bn on January 2024. However, €1.7bn was in once-off receipts arising from the Court of Justice of the European Union (CJEU) ruling in September. 

Without that payment 'underlying' revenues were €8.4bn, €0.6bn (7.2%) higher than in January last year. Income tax receipts of €3bn were up by 2.8% while VAT receipts of €4.1bn were up by 5.8%. 

January is generally the strongest VAT month of the year as receipts incorporate the Christmas trading period. Excise duties of €0.5bn were up by €27 million on last year.

Excluding CJEU receipts, corporation tax in January was modest at €90m. January is not generally a significant month for this revenue stream.

Minister for Finance, Paschal Donohoe said the figures show that tax revenues continued to demonstrate steady growth at the start of the year. "In particular, the ongoing expansion of income tax and VAT receipts are a positive indicator of the fundamental strength of our economy," he said.

However, there are clear risks ahead. As a small open economy, Ireland is particularly vulnerable to changes in the global economic environment. 

This underlines the importance of continuing to pursue a balanced and sustainable fiscal policy."

The Government said it plans to use the once-off proceeds from the Apple decision to improve the stock of infrastructure, as well as investing windfall tax revenues in the Future Ireland Fund to prepare for future challenges.

Total gross voted expenditure to the end of January amounted to €9.2bn, up by €1.7bn (22.7%) on January last year.

A headline Exchequer surplus of €3.6bn was recorded in January. Excluding CJEU receipts, the surplus stood at €1.8bn, down by €0.4bn on January last year.

January saw the introduction of spending measures announced in the Budget including increases to Social Protection weekly rates, the expansion of the school meals scheme and the increased health sector investment.

“At the end of January, capital expenditure was 51.5% higher than the same period last year," the Minister for Public Expenditure Jack Chamber said. 

"This continues the ramp-up of the National Development Plan as well as the Government’s commitment to investing in long-term public infrastructure projects that will address infrastructural deficits, enhance the competitiveness of our economy improve the quality of life for those living and working in Ireland.”